Dishonor of Cheque - insufficiency of funds - The offences under ...

Indian Laws

January 17, 2022

Dishonor of Cheque - insufficiency of funds - The offences under Section 138 of the Act, in fact, though is criminal in nature, but, it has an element of enforcing negotiable instruments to ensure free and fair transactions. It has an element of civil liability, as well. Admittedly, both the parties had their business dealings. It is also admitted that, in fact, in the past, the respondent had paid certain amounts to the appellant - As stated, in the instant case, parties were in business dealing. They were dealing in the property. They have transactions in the past, as well. Therefore, this Court is of the view that the interest of justice would be served, if a fine of ₹ 6 Lacs is imposed on the respondent. Out of the fine, ₹ 4 Lacs should be paid to the appellant as compensation. - HC

View Source